Modeling the demand and supply in a new B2B-upstream market using a knowledge updating process
AbstractBusiness-to-Business (B2B) services companies invest heavily in acquiring very expensive assets that they hire out to serve their clients (e.g. UPS buys huge warehouses and hires them out to companies), and hence they engage in careful long-term planning and forecasting, especially when it concerns a new market. It is interesting to note that the client-firms, on the other hand, decide to hire those assets based mostly on the prevailing short-term market forces. Hence, it is important for the companies which provide the assets for hire to also build the prevailing short-term market trends into their long-term forecasting and planning. In this paper, we develop a model for tracking these two simultaneously evolving and interacting patterns, namely the asset-availability (i.e. supply) and utilization (i.e. demand) patterns, in order to better understand the underlying processes, and thereby provide a basis for better forecasting. We test our models using three sets of data collected from the oil drilling industry, and find the proposed model to provide a good fit and forecasting efficiency.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Forecasting.
Volume (Year): 27 (2011)
Issue (Month): 4 (October)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ijforecast
Marketing B2B service Knowledge updating Demand and supply Oil drilling;
Find related papers by JEL classification:
- Mar - Business Administration and Business Economics; Marketing; Accounting - - - - -
- B2B - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - -
- ser - - - - - -
- Kno - Law and Economics - - - - -
- upd - - - - - -
- Dem - Microeconomics - - - - -
- and - - - - - -
- sup - - - - - -
- Oil - Economic Development, Technological Change, and Growth - - - - -
- dri - - - - - -
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kenneth S. Corts, 2004. "The Effect of Repeated Interaction on Contract Choice: Evidence from Offshore Drilling," Journal of Law, Economics and Organization, Oxford University Press, vol. 20(1), pages 230-260, April.
- Frank M. Bass & Trichy V. Krishnan & Dipak C. Jain, 1994. "Why the Bass Model Fits without Decision Variables," Marketing Science, INFORMS, vol. 13(3), pages 203-223.
- Porter, Robert H, 1995.
"The Role of Information in U.S. Offshore Oil and Gas Lease Auctions,"
Econometric Society, vol. 63(1), pages 1-27, January.
- Robert H. Porter, 1992. "The Role of Information in U.S. Offshore Oil and Gas Lease Auctions," NBER Working Papers 4185, National Bureau of Economic Research, Inc.
- Robert H. Porter, 1992. "The Role of Information in U.S. Offshore Oil and Gas Lease Auctions," Discussion Papers 1008, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Hendricks, Kenneth & Porter, Robert H, 1992. "Joint Bidding in Federal OCS Auctions," American Economic Review, American Economic Association, vol. 82(2), pages 506-11, May.
- Dipak Jain & Vijay Mahajan & Eitan Muller, 1991. "Innovation Diffusion in the Presence of Supply Restrictions," Marketing Science, INFORMS, vol. 10(1), pages 83-90.
- Tülin Erdem & Michael P. Keane, 1996. "Decision-Making Under Uncertainty: Capturing Dynamic Brand Choice Processes in Turbulent Consumer Goods Markets," Marketing Science, INFORMS, vol. 15(1), pages 1-20.
- P. B. Seetharaman, 2004. "Modeling Multiple Sources of State Dependence in Random Utility Models: A Distributed Lag Approach," Marketing Science, INFORMS, vol. 23(2), pages 263-271, April.
- Brannas Kurt & Nordstrom Jonas, 2004. "An Integer-Valued Time Series Model for Hotels that Accounts for Constrained Capacity," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 8(4), pages 1-11, December.
- Hendricks, Kenneth & Porter, Robert H, 1996. "The Timing and Incidence of Exploratory Drilling on Offshore Wildcat Tracts," American Economic Review, American Economic Association, vol. 86(3), pages 388-407, June.
- Paddock, James L & Siegel, Daniel R & Smith, James L, 1988. "Option Valuation of Claims on Real Assets: The Case of Offshore Petroleum Leases," The Quarterly Journal of Economics, MIT Press, vol. 103(3), pages 479-508, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.